federal excise rules updated up to june 2006
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(e) cable TV operator means a person, a company, a firm, an establishment
or an organization involved in the collection and distribution or
dissemination of audio-video signals for public viewing whether through a
cable, MMDS, LMDS or DTH (through satellite receiver);
(f) challan means T.R-6 prescribed under rule 92 of the Treasury Rules Vol. I.
(g) Collector means a Federal Excise Officer appointed to exercise powers and
discharge duties conferred or imposed on Collector under the Act or these
rules in relation to the following Collectorates below, namely:
(i) Collectorate of
Federal Excise,
Hyderabad.
The area comprising the Province of Sind
excluding Civil Division of Karachi.
(ii) Collectorate of
Federal Excise,Quetta.
The area comprising the Province of
Baluchistan, including the ProvinciallyAdministered Tribal Areas thereof.
(iii) Collectorate of
Federal Excise,
Faisalabad.
The area included in Civil Divisions of
Faisalabad and Sargodha.
(iv) Collectorate of
Federal Excise,
Gujranwala.
The area included in Civil Division of
Gujranwala.
(v) Collectorate of
Federal Excise,
Multan.
The area included in the Civil Divisions of
Dera Ghazi Khan, Bahawalpur and
Multan.
(vi) Collectorate of
Federal Excise,
Rawalpindi.
The area included in the Civil Division of
Rawalpindi, the Islamabad Capital
Territory and the Northern Areas.
(vii) Collectorate of
Federal Excise,
Peshawar.
The area comprising the Province of the
North-West Frontier, as well as the
Provincially Administered Tribal Areasthereof and the Federally Administered
Tribal Areas.
(viii) Collectorate of
Federal Excise,
Sales Tax House,
Karachi.
The area comprising Civil Division of
Karachi.
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(ix) Collectorate of
Federal Excise,
Large Taxpayers
Unit, Karachi.
Such units and persons liable to Federal
excise duty as are assigned to the Large
Taxpayers Unit, Karachi.
(x) Collectorate of
Federal Excise,
Lahore.
The Area comprising of Civil Division of
Lahore in the Province of the Punjab.
(xi) Collectorate of
Federal Excise,
Large Taxpayers
Unit, Lahore.
Such units and persons liable to Federal
excise duty as are assigned to the Large
Taxpayers Unit, Lahore.
(h) committee means a committee constituted under sub-section (2) of section
38 of the Act;
(i) declared premises means any premises declared in the application for
registration for the purposes of the Act or these rules and such premises
shall be treated as registered premises;
(Ia) foreign exchange dealer includes an exchange company or money
changer;;
(j) curing includes wilting, drying, fermenting and any process of rendering an
unmanufactured product fit for marketing or manufacture;
(k) dispute means, a case where, for evidently valid reasons, a registered per-son is aggrieved in connection with any matter of Federal excise specifiedin sub-section (1) of section 38 of the Act and prima facie deserves relief forthe elimination of possible hardship;
(l) Federal excise practitioner means a person registered as Federal excisepractitioner in the prescribed manner;
(m) Form means the Federal Excise series of forms prescribed under theserules;
(ma) franchise meansanagreement by which the franchisee is grantedrepresentational rights to sell or manufacture goods or to provideservice or to undertake any process identified with franchiseragainst an agreed fee or consideration including royalty, whetheror not a trade mark, service mark, trade name or logo or any suchsymbol, as the case may be, is involved;
(mb) franchiser means any person who enters intofranchise and includes any associate of franchiser to enter into
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franchise on his behalf, and the term franchisee shall beconstrued accordingly;
(mc) Non-banking finance company means a company ora body corporate licensed under the Non-Banking Finance
Companies (Establishment and Regulation) Rules, 2003;; and(n) head of account means the relevant head of account specified by the
Federal Government;
(o) officer means a Federal excise officer by whatever designation or rank he
is called ; and
(oa) post paid telecommunication service means the service inrespect of which charges are collected by the service
provider after the use of the telecommunicationservices; and
(ob) pre-paid telecommunication service means theservice in respect of which charges are collected by the serviceprovider prior to the use of the telecommunicationservices;;
(p) shipping agent means a person, whether licensed or not under the
Customs Act, 1969 (IV of 1969), or the rules made thereunder, who
provides or renders any service in relation to entrance or clearance of a
conveyance at a customs port and issues line or carrier bill of lading, for or
on behalf of a shipping line and includes non-vessel operating common
carriers (NVOCC), slot carriers, charters, international freight forwarders
and consolidators, rendering services in relation to import and export of
cargo, whether independently or as subsidiary of shipping line, carrier and
non-vessel operating common carriers.
(2) The words and expressions used but not defined herein, shall have the
same meaning as assigned to them in the Act.
CHAPTER II
REGISTRATION AND ALLIED MATTERS
3. Application for registration.(1) A person required to be registered un-
der the Act shall, if not already registered before commencing manufactur-
ing of any excisable goods or before rendering or providing any excisable
services, shall apply to the Collector for registration in the form FE-I.
(2) In case of a corporate person, that is, a listed public limited company or an
unlisted public limited company or a private limited company the application for registra-
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tion shall be filed to the Collector having jurisdiction over that area where the registered
head office of such company is located.
(3) A non-corporate person, having a single manufacturing unit, whose
business premises and manufacturing unit are located in different areas, shall apply to the
Collector of the area in whose jurisdiction his manufacturing unit is located:
Provided that a corporate person shall have the option to apply for transfer of
registration to the Collector having jurisdiction over the area where manufacturing unit is
located.
(4) In case of excisable services, application for registration shall be filed to the
Collector of the area where the head office of the applicant is located.
(5) Where the application for registration is complete in all respects, the
Collector or an officer authorized by him in this behalf, after conducting such verification
or inquiry as is deemed necessary, shall forward the application to the CentralRegistration Office in the Board who shall issue a certificate of registration containing the
registration number to the applicant in the form FE-II.
(6) The application for registration may be filed electronically.
4. Change in the particulars of registration.(1) In case there is a change
in the name, address or other particulars as stated in the registration applic-
ation or registration certificate, the registered person shall notify the change
to the Collector concerned within fourteen days of such change.
5. Transfer of Registration.(1) The Board may, subject to such conditions,
limitations or restrictions as it may deem fit to impose, by an order, transfer
the registration of a registered person from the jurisdiction of one Collector-
ate to another Collectorate or, as the case may be, to the Large Taxpayers
Unit.
(2) In case of transfer of registration, the Collector in whose jurisdiction the
registration has been transferred, shall issue a new certificate of registration to the
taxpayer in lieu of the previous certificate, and such new certificate shall contain a
reference to the previous certificate of registration.
(3) Where a registered person intends to shift his business activity from the
jurisdiction of one Collector to another, or he has any other valid reason for such transfer,
he shall apply to the Collector for transfer of his registration and the provisions of this rule
shall, mutatis mutandis, apply to such cases.
(4) In cases, where registration of any person has been transferred by the
Board from one Collectorate to another or to the Large Taxpayers Unit for the purposes
of Sales Tax Act, 1990, the registration of such person for the purpose of the Act shall
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ipso facto stand so transferred.
6. Other matters relating to registration.(1) In case a person ceases to
manufacture excisable goods or provide or render excisable services, he
shall apply to the Collector for cancellation of his registration in the form FE-
III and the Collector may, after such enquiry or audit as he may deem fit tohave, cancel the registration of that person from such date as may be spe-
cified, but not later than three months from the date of such application or
the date on which all the dues under the Act or these rules and arrears, if
any, outstanding against such person are deposited by him, whichever is
later.
(2) Where a Collector has reasons to believe that a registered person is found
to have issued false invoices, or evaded duty or has committed any offence or irregularity
to evade duty or avoid his obligations under the Act or these rules, he may, after confirm-
ing the facts and veracity of the information and giving opportunity to such person to clari-fy his position, suspend his registration.
(3) In case a person, whose registration has been suspended under sub-rule
(2) subsequently approaches the Collector for withdrawing the order for suspension of
registration, the Collector may, after conducting such inquiry as he may deem fit, including
consultation with the concerned trade association or body, withdraw such order subject to
his satisfaction that such person is not engaged in the activities specified in sub-rule (2).
(4) A person manufacturing or producing more than one excisable goods or
excisable as well as non-excisable goods or providing or rendering more than one
excisable services or excisable as well as non-excisable services, shall apply for and takeor shall be issued only one registration provided that in cases where goods are liable to
excise duty and are also chargeable to sales tax, the registration issued for sales tax
purpose shall be valid for excise purpose as well.
(5) Notwithstanding anything contained in this Chapter, in case of persons who
are registered also for the purposes of sales tax, the procedures prescribed
under the Sales Tax Law relating to the following matters shall mutatis
mutandis apply,
(a) de-registration;
(b) supersession or cancellation of registration;
(c) transfer of registration; and
(d) changes or amendments in registration.
CHAPTER III
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(3) Unless otherwise required under the Act or these rules, invoice shall be
issued at the time when goods are physically removed from the registered premises for
intended sale or export and in case of services, on the day when services are provided
or rendered regardless of the time or day of receipt of the price of such goods or
services from the buyer.
(4) Consolidated, clubbed or aggregated invoices shall not be issued under
any circumstances.
12. Computer generated invoices. A registered person may issue
computer generated invoices provided that each copy of such invoice shall
invariably be signed by him or a person authorized by him in this behalf.
13. Proof in support of adjustment. (1) No adjustment of duty already
paid shall be admissible against duty payable on any excisable goods
unless a registered person has a valid proof in the form of purchase
invoice or goods declaration or any other lawful document in his own
name besides a proof to the effect that he has paid the price of goods
inclusive of duty at previous stage through banking channels as laid down
in the Act.
(2) Where the excisable raw materials or input goods can not be procured or
purchased by any person directly from a manufacturer of such raw materials or input
goods due to the policy or regulations of the Government, a photocopy of excise
invoices issued by the manufacturer to an authorized marketing company alongwith
concerned invoice issued by such marketing company shall be treated as valid
document for the purpose of duty adjustment provided other requirements of the Actand these rules are fulfilled.
(3) Notwithstanding anything contained in the Act or these rules, a registered
person shall be entitled to claim adjustment of duty already paid on his inputs within a
period of six months provided that in case of un-manufactured tobacco, the
manufacturers of cigarettes shall be entitled to claim adjustment within two years.
14. Apportionment of adjustment. In case a registered person is
manufacturing and selling both excisable and non-excisable goods
manufactured or produced from duty-paid inputs, he shall be entitled to
adjustment of duty only to the extent and in respect of excisable goods.
CHAPTER V
MANUFACTURING OF GOODS AND REMOVAL THEREOF
15. Declaration of business premises and equipment. Every manufacturer
or service provider in respect of dutiable goods or services shall, at the time
of applying for registration, declare in writing all details of his business
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premises including godowns along with the name, address, copy of National
Identity Card, details of plant, machinery, raw materials, dutiable or other
goods to be produced or dutiable or other services to be provided and any
change in these particulars shall be intimated to the Collector within fifteen
days of the change.
16. Storage of excisable goods. (1) Every manufacturer of excisable goods
shall maintain a separate store-room or any other place of storage on his
registered manufacturing premises and deposit in such room or place all
excisable goods manufactured or produced by him.
(2) No duty paid goods or goods other than excisable goods shall be deposited
in such store room or place of storage.
17. Daily account of production, clearance and balances of excisable
goods. (1) Every manufacturer shall maintain a production account in
appropriate manner and shall enter daily in such account the description,
quantity and rating of all excisable and other goods which are
(a) manufactured or produced in his factory;
(b) removed on payment of duty from the factory for home consumption;
(c) removed without payment of duty from factory for export outside Pakistan;
(d) issued for use in the manufacture of other goods within the factory or
reprocessing or remanufacture;
(e) goods sent for value addition or further processing to other manufacturing
premises; and
(f) in balance at the close of each day.
(2) In the case of removal of exempted goods, or of excisable goods on
payment of duty, or without payment of duty for export, the manufacturer shall maintain
accounts, separately for each type of such removal.
(3) The manufacturer shall also maintain records of such inputs used in
connection with manufacturing of goods within the factory like electricity, fuel (used in
manufacturing process) gas, telephone, wages of labour and salaries and other
emoluments of staff and rent paid for the premises.
18. The manner of maintaining records and accounts etc. Where any
person is required by the Act or these rules to maintain any record or
account in respect of excisable goods produced or manufactured by him or
in respect of excisable services provided or rendered by him, he shall,
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(a) at the time of making any entry, insert the date when the entry is made;
(b) keep the record at all times ready for the inspection of the officers, and shall
permit any officer to inspect it and make any such entry therein or take out
any extract therefrom as the officer thinks fit, and shall, at any time, if
demanded, send it to such officer; and
(c) preserve them for a period of three years from the close of the financial year
to which they relate.
19. Determination of duty in case proper records and accounts are not
maintained. (1) If the manufacturer of any excisable goods fails to keep
or render proper accounts regarding the manufacture, storage, or disposal
of such goods or of the receipt, storage, utilisation or disposal of raw
materials including manufactured and semi-manufactured products
acquired and used in the manufacture of such goods to the satisfaction of
the officer not below the rank of Assistant Collector, the said officer shall
determine the amount of duty payable in respect of such goods in his
discretion in accordance with the Act or rules made thereunder.
(2) If the officer is satisfied that the accounts maintained by a manufacturer
show a lesser quantity of excisable goods manufactured on the basis of the quantities of
raw materials including manufactured and semi-manufactured products received by the
manufacturer, he may demand from the manufacturer such amount of duty as is, in his
discretion under the Act or rules made thereunder, payable by the manufacturer.
(3) The provisions of sub-rules (1) and (2) shall mutatis mutandis apply toexcisable services.
(4) Any demand for duty under this rule shall not prejudice action under any
other provisions of the Act or these rules.
20. Destruction of excisable goods. Where any excisable goods are
rendered unfit for consumption or for further manufacture and the owner
intends to claim immunity from duty thereon, he shall, after obtaining the
permission in writing of the Collector, destroy them in the presence of the
officer deputed by the Collector for the purpose.
Explanation:For the purpose of this rule, immunity includes repayment of duty
already paid on the sale of goods in case such goods have been
received back from or returned by the buyer due to genuine reasons.
21. Power to forgo duty on excisable goods lost or destroyed while
lodged within registered premises. (1) If any excisable goods lodged
within a registered premises or during movement therein are lost or
destroyed by any unavoidable accident, the Collector may after such
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verification as he may deem necessary to satisfy himself about such
incident, forego duty which might be payable on their future sale had they
not been so lost or destroyed.
(2) Notwithstanding anything contained in sub-rule (1) no adjustment of duty
paid on the inputs shall be admissible or allowed under any circumstances in respect ofexcisable goods lost or destroyed under these rules.
22. Record of destructions and remissions.In each Collectorate there shall
be maintained a register relating to all destructions and remissions recording
all particulars about the name and address of the applicant, date of
application, number and date of Collectors order, description and quantity of
goods, value of goods and the amount of duty involved and remitted, date of
destruction and name of the officer with designation who supervised the
destructions and each entry in the register shall be signed by the said officer
alongwith the Assistant or Deputy Collector incharge of the section or branchwhere such register is maintained.
CHAPTER VI
TOBACCO AND TOBACCO PRODUCTS
23. Receipt of non-duty paid un-manufactured tobacco in a factory. (1) If
a manufacturer of cigarettes, smoking mixtures for pipes and cigarettes and
dutiable cigars and cheroots receives from outside the registered premises
any un-manufactured tobacco, then, the weight of each package, bale or
bag shall be legibly marked and numbered serially and record the sameaccordingly so as to render them easily identifiable from their entries in the
relevant accounts and records.
(2) The refuse, dust or sand obtained from the processes of duty paid tobacco
during the manufacture of cigarettes or other tobacco products, shall be accounted for by
the person manufacturing such products.
24. Manufacture and disposal of excisable tobacco products. No
excisable tobacco products other than cigarettes shall be sold from any
registered premises except under the following conditions, namely:
(a) such products shall be packed into separate packages of distinct
specifications, sizes or weights;
(b) each such packet shall be enclosed in a wrapper or other outer covering the
expenses of which shall be borne by the manufacturer; and
(c) the duty on the products shall be paid at the rates applicable on such
products under the Act, unless such products are intended for export out of
Pakistan.
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3[24A. Printing of retail price, health warning and the name of themanufacturer on each packet of cigarettes.(1) No packet of cigarettes forconsumption in domestic market shall be cleared from the manufacturing premiseswithout printing thereon the retail price, health warning and the name of themanufacturer.
(2) The cigarette packets cleared from manufacturing premises for export shallbear the marks, as specified under clause (c) of sub-rule (2) of rule 33.
24B. Minimum retail price of cigarettes. For the purposes of payment ofFederal excise duty, the minimum retail price (excluding sales tax) of cigarettes, shallnot be less than eighty-fourper centof the retail price specified under column (4[2]) ofserial No. 11 of Table I of the First Schedule to the Act.
24C Time and manner of payment of duty. (1) Federal excise duty chargeableon the clearances made during a month shall be deposited on the last working day of
the month, in the designated branch of National Bank of Pakistan:
Provided that the duty chargeable on the clearances, if any, made after thebusiness or office hours on the last working day of a month, shall be deposited on thefirst working day of the following month.
(2) The Federal excise return shall be furnished on the 15th day of the monthfollowing the tax period.]
25. Excise stamps in respect of cigarettes. From such date as may be
prescribed by the Central Board of Revenue, no packet of cigarettes shall beremoved and sold by the manufacturer or any other person without affixing
excise stamp in such style and manner as may be prescribed by the Board
in this behalf.
26. Affixing banderole in respect of cigarettes. From such date as may be
prescribed by the Board, no packet of cigarettes shall be removed and sold
by the manufacturer or any other person without affixing banderole in such
form, style and manner as may be prescribed by the Board in this behalf.
27. Expenditure or cost of excise-stamping and banderoles. All expenses
or cost incurred or required to be incurred on printing, making and affixingexcise stamps and banderoles under rules 25 and 26 shall be borne by the
manufacturer or as the case may be, by the concerned person.
28. Imported cigarettes. If so required by the Board, the provisions of rules
25, 26 and 27 shall mutatis mutandis apply in case of cigarettes imported
3 Rules 24A, 24B and 24C inserted vide SRO 561(I)/2006 dated 5.6.2006.4 Figure 2 substituted for 4 vide SRO 561(I)/2006 dated 5.6.2006.
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from abroad for consumption in Pakistan and all obligations in this behalf
shall be discharged by a person importing and selling such cigarettes.
29. Confiscation of cigarettes in case of violation. The cigarettes removed
and sold in violation of this Chapter shall be liable to outright confiscation
and ownership of such confiscated cigarettes shall rest with the FederalGovernment.
30. Disposal of confiscated cigarettes. The cigarettes confiscated under
rule 29 shall be disposed off in such manner as may be specified by the
Collector of Federal excise.
Explanation: For the purpose of this rule, disposal includes destruction.
31. Printing of nicotine and tar contents etc. (1) From such date as the
Board may specify, no cigarettes shall be cleared from any factory unless
these conform to the health standards prescribed by the FederalGovernment and nicotine and tar contents are duly printed on each packet
of cigarettes and in case of failure to observe any such condition, embargo
shall be imposed on clearance of cigarettes in such manner as may be
directed by the Collector.
(2) From such date as may be specified by the Federal Government or the
Board, every manufacturer of cigarettes or other tobacco products shall meet all the
conditions and restrictions which may be imposed by the Federal Government in
compliance of the Framework Convention For Tobacco Control (FCTC) adopted on the
23rd
May, 2003.
CHAPTER VII
EXPORT DRAWBACK AND REFUND OF DUTY
32. Drawback of duty paid on goods exported. (1) Subject to the
conditions and limitations contained in this Chapter, rebate of duty paid on
any excisable goods may be granted by the Collector of Federal excise or
the officer authorized by him in this behalf, if such goods are exported.
(2) The Board may withdraw or disallow grant of rebate of duty paid on anyexcisable goods.
(3) The claim for the rebate of duty shall be lodged, within three months of the
date on which the goods were exported, with the Collector in whose jurisdiction the person
is registered.
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(4) The rebate may be granted by the Collector or the authorized officer if he is
satisfied that duty had actually been paid on the goods which were exported and that the
goods were duly exported in accordance with the prescribed procedure.
(5) No rebate under this rule shall be admissible if the goods, after removal from
the factory on payment of duty, were subjected to any further process of manufacture orotherwise tampered with after such removal and before export.
33. Drawback of duty on exported goods which are made from excisable
goods. (1) The Central Board of Revenue may, by notification in the
official Gazette, grant rebate of duty paid on any goods used in the
manufacture of any goods exported out of Pakistan, except those specified
by the Board under sub-rule (2) of rule 32 at such rate or rates and subject
to such conditions and limitations as may be specified in the notification.
(2) No rebate of Federal excise duty shall be granted in the following cases,
namely:-
(a) goods exported from Pakistan by land route except as declared exportable
against rebate of Federal excise duty as per conditions prescribed under the
relevant Export Policy;
(b) export of consumer goods to any country, in retail packings, bearing the
retail price in Pakistani rupees; and
(c) export of exciseable goods in retail packing not printed, in bold letters, with
the words
(i) NOT FOR SALE IN PAKISTAN or such other code as the Central
Board of Revenue may, for reasons to be recorded in writing,
approve;
(ii) FOR EXPORT ONLY; or
MANUFACTURED FOR ____________________(the name of their
customer).
(3) A person desiring to be granted a rebate of duty under sub-rule (1) inrespect of goods in the manufacture of which excisable goods have been used and which
are to be exported shall make an application in quadruplicate signed by him or his
authorized agent, to the Board declaring therein the name and address of his business,
the description, quantity and value of excisable and non-excisable goods used, the rate
and amount of excise duty levied and the value of goods for export.
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(4) On the receipt of an application under sub-rule (3), the Board may cause
such surveys or enquiries to be made as it deems necessary to enable it to decide
whether any rebate should be granted and if so, at what rate or rates and from what date.
(5) In order to obtain payment of rebate, the applicant shall produce before the
officer authorized by the Collector of Federal excise in this behalf, the shipping documentscertifying the export of the consignment. After satisfying himself that the claim is in order,
officer shall sanction the payment of the rebate in accordance with the relevant notification
and these rules.
(6) If any of the particulars entered in the application submitted under this rule is
found to be incorrect, either before or after the export of goods, the applicant shall be liable
(a) to a penalty under the Act and these rules for each breach of any provision
of this rule;
(b) to refund to the Government the sums received by him as rebate; and
(c) to be deprived of the benefit of such rebate for a period of one year.
(7) No rebate shall be granted if the claim for rebate is filed after one hundred
and twenty days of the exportation or of the publication of notification, whichever is later.
34. Pecuniary competence to sanction drawback or refund.The claims
for refund or rebate of duty of excise shall be decided by the following
officers of Federal excise, namely:-
S.No. Description Limit in each claim
(1) (2) (3)
1. Assistant Collector Not exceeding rupees two hundred thousand.
2. Deputy Collector Not exceeding rupees one million.
3. Additional Collector Unlimited.
35. Additional documents in support of refund claims in certain cases.
In a case where goods involved in any refund claim have been purchased
by or sold and supplied to any government, semi-government, public-sector
agency or department on account of the entitlement of the later for any
concession or exemption of duty of excise, the claim shall, in addition to
other necessary documents, be supported with a copy of the relevant
contract or purchase order and an undertaking of the claimant that benefit
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of the admissible refund has been passed on to such agency or department
and outcome of such claim shall be communicated to such department or
agency in such manner as may be deemed proper by the officer dealing
with the claim.
36. Refund in case of POL products sold to diplomats and diplomaticmissions.(1) The refund claims of duty of excise in respect of petrol sold
to diplomats and diplomatic missions for use in their official and personal
vehicles shall be admissible on reciprocity basis as certified by the Ministry
of Foreign Affairs and filed on monthly basis accompanied by the suppliers
receipt and statement-cum-certificate showing the names and designations
of the foreign missions and the quantity of petrol purchased by each during
the preceding month duly certified and signed by the officer concerned of
the mission confirming that the quantities supplied were either for personal
or for official use.
(2) The Assistant Collector of Federal excise after necessary scrutiny of the
refund claim, shall issue refund sanction order alongwith advice to the
Treasury Officer of the Collectorate retaining one copy thereof for his official
record, for payment of the sanctioned amount and the Treasury Officer shall
make payment accordingly and return the advice back to the Assistant
Collector after giving the date of encashment under his signature and
official stamp and the suppliers receipt shall be cancelled as paid.
(3) Verification of original credit of duty shall not be done and the Accounts
Officer of the Collectorate shall not be required to countersign the refund
sanction orders in such cases.
(4) The Assistant Collector who grants refund in these cases shall maintain a
register of such refunds and entries in the register shall be kept mission-
wise and payments shall be reconciled with the Treasury Officer and the
concerned mission on monthly basis and consolidated position of such
monthly payments and reconciliation shall be reported to the Collector for
onward intimation to the Central Board of Revenue.
(5) The provisions of rule 34 shall not apply to cases of refund covered under
this rule and the Assistant Collector of Federal excise shall be competent toprocess and decide these cases without any financial limit.
37. Refund in case of POL products used in official cars and air crafts of
the President, Prime Minister and Provincial Governors.The
provisions of rule 36 shall mutatis mutandis, apply in case of refund claims
filed in respect of POL products purchased for use in the official cars and air
crafts of the President, Prime Minister and Provincial Governments
provided that necessary verifications and certifications shall be done by the
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concerned Military Secretary or an officer duly authorized by him under
intimation to the Collector and the principle of reciprocity shall not be
relevant to such cases.
38. Treatment of imported POL products. The facility provided under rules
36 and 37 shall also be admissible in case of such POL products as areimported on payment of duty of excise and supplied under the said rules
without involving any process of manufacture and in such case the amount
of duty of excise paid at import stage shall be refunded.
39. Rejection of refund or export drawback claim.No claim for refund of
duty of excise or rebate of such duty on exported goods shall be rejected on
any account unless a written show cause notice has been issued and
opportunity for hearing has been afforded to the claimant and order for
rejection shall be issued in the form and manner of an adjudication order.
CHAPTER VIII
SPECIAL PROCEDURES FOR EXCISABLE SERVICES
40. Special procedure for insurance companies. (1) All insurance
companies shall pay the Federal excise duty leviable on services provided
or rendered by them in respect ofall kind of insurance except life insurance.
(2) The duty shall be paid on the gross amount of premium charged on risk
covered in the insurance policy.
(3) The duty in respect of an insurance policy shall be accounted for in the
same month when the premium is received and shall be deposited by the insurance
company on the 7th day following the month in which the premium is received.
(4) For every month, the insurance company shall file a return electronically in
the form FE-IV(a) by the 15th day of the following month to the Collectorate in whose
jurisdiction the insurance company is registered.
(5) In case duty is not paid by any insurance company by the due date, the
insurance company shall, in addition to the payment of duty and default surcharge, be
also liable to penalty under the Act or these rules.
(6) An insurance company shall not be liable to pay the duty in respect of the
contract or any part thereof is cancelled.
(7) The insurance companies shall maintain such records and submit such
returns as the orBoard may prescribe from time to time.
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(8) A copy of annual audit report, duly audited by a chartered accountant, shall
be submitted to the Collector within fifteen days of its receipt by the insurance company
from its chartered accountant and any short payment of duty found out as a result of such
audit shall be paid by the insurance company within fifteen days of the receipt of the audit
report and proof of such payment shall be furnished to the Collector.
5[40A. Special procedure for collection of excise duty on services providedby banking companies, financial institutions and non-banking financecompanies. (1) The provisions of these rules shall apply for collection and payment ofexcise duty by persons providing or rendering financial services as defined under theserules.
(2) Every banking company, financial institution and non-banking financecompany shall pay the Federal excise duty levyable on the services rendered orprovided by the company or institution to any person. For the purpose of levy of exciseduty under these rules, the services provided by the banking companies, financialinstitutions and non-banking finance companies shall represent:,
(a) L/C commission;
(b) guarantee commission;
(c) brokerage commission;
(d) issuance of pay order and demand drafts;
(e) bill of exchange charges;
(f) transfer of money including telegraphic transfer, mail transfer
and electronic transfer;
(g) providing bank guarantees;
(h) bill discounting commission;
(i) safe deposit lockers fee;
(j) safe vaults;
(k) credit and debit card issuance, processing, operation charges;
and
(l) commission and brokerage on foreign exchange dealings.
(3) The Head Offices of the banking companies, financial institutions and non-banking financial companies shall apply to the Central Registration Office located atCentral Board of Revenue for excise registration in the form, FE-1 under rule 3.
(4) The duty under these rules shall be paid by the banking company or financialinstitution or non-banking finance company on the gross amount charged for serviceprovided to the customers.
5 Rules 40A and 40B inserted vide SRO 561(I)/2006 dated 5.6.2006.
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(5) The duty due for each month shall be paid by the Head Office of the companyor institution by the 14th day of the following month in respect of the services providedupto the last working day of each calendar month. For every month, the company orinstitution shall file a return electronically in the form FE-IV(b) under rule 6[47] by the 15thday of the following month to the Collectorate in whose jurisdiction it is registered.
(6) In case duty is not deposited by the company or institution by the due date, itshall, in addition to the payment of duty and default surcharge, be also liable to penaltyunder the Act or these rules.
(7) The Head Office of the company shall maintain records of the servicesprovided or rendered under these rules and the collection of duty thereon in suchmanner as will enable the distinct ascertainment of payment of excise duty on each ofthe services mentioned in the scope of these rules. The Head Office shall also submit acopy of annual audit report to the Collector of Federal Excise within 15 th day of itspublication and any short payment of duty found out as a result of such audit report
shall be paid by the registered person within 15 th day of the notice received for suchpayment.
40B. Special procedure for collection of excise duty on services providedby foreign exchange dealers including exchange companies and moneychangers. (1) The provisions of these rules shall apply for collection and payment ofexcise duty by foreign exchange dealers including exchange companies and moneychangers whether or not licensed by the State Bank of Pakistan to conduct foreignexchange dealings.
(2) Every foreign exchange dealer including an exchange company and money
changer shall pay the Federal excise duty leviable on the services rendered or providedto any person. For the purpose of levy of excise duty under these rules, the servicesprovided by the foreign exchange dealers shall represent the commission andbrokerage on foreign exchange dealings.
(3) The Head Offices of the foreign exchange dealers shall apply to the CentralRegistration Office located at Central Board of Revenue for excise registration in theform, FE-1 under rule 3.
(4) The duty under these rules shall be paid by the foreign exchange dealers onthe gross amount of commission or brokerage charged for service provided to thecustomers.
(5) The duty due for each month shall be paid by the Head Office of the foreignexchange dealer by the 14th day of the following month in respect of the servicesprovided upto the last working day of each calendar month. For every month, theforeign exchange dealer shall file a return electronically in the form FEIV(c) under rule49 by the 15th day of the following month to the Collectorate in whose jurisdiction he isregistered.
6 Figure 47 substituted for figure 49 vide SRO 647(I)/2006 dated 21.6.2006.
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(6) In case duty is not deposited by the dealer by the due date, it shall, in additionto the payment of duty and default surcharge, be also liable to penalty under the Act orthese rules.
(7) The Head Office of the foreign exchange dealer shall maintain records of theservices provided or rendered under these rules and the collection of duty thereon insuch manner as will enable the distinct ascertainment of payment of excise duty oneach of the services mentioned in the scope of these rules.
(8) Audit of the records for verification of payment of excise duty under theserules, shall be conducted by concerned Collectorate of Sales Tax and Federal Excise asand when required but not more than once a year.]
41. Special procedure for payment of Federal excise duty by shipping
agents.(1) Every shipping agent, hereinafter referred to as the agent,
shall charge, collect and pay the duty in respect of each ship handled by
him which calls at any port of Pakistan after calling on a foreign port.
(2) Every agent shall pay duty at the rate of fifteen per centof the value ofexcisable services which shall be the commission charged by an agent on the netocean freight amount of cost and freight export cargo for such services provided orrendered by him:
Provided that in case of Non-Vessel Operating Common Carriers (NVOCC),International Freight Forwarders, Consolidators and Slot Carriers, duty shall be charged
and paid at the rate of two hundred rupees per house bill of lading negotiated in thebank, instead of the rate specified above.
(3) For the purposes of levy of Federal excise duty, the value of excisableservices shall not include reimbursable expenses incurred by an agent, such as freight,pilotage and berth-hiring charges, port dues, cargo expenses, brokerage paid on exportcargo and ship handling expenses paid to the stevedores including all ancillary charges.
(4) The Assistant Collector of the concerned Customs House shall not grant finalport clearance to a ship unless the agent furnishes proof of payment of duty.
(5) The agent shall furnish to the Collector of Federal excise a monthly statementin respect of ships handled by him by the 15 th day of the following month, in thefollowing form, namely:-
MONTHLY STATEMENT FOR SERVICES RENDERED BY SHIPPING AGENTS
(i) Name of shipping agent ..(ii) Month to which return relates .
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S. No. Date of
arrival of
ship
handled by
the agent
IGM No.
and date
Port of
Arrival
Amount of FED
paid
Treasury
challan No. &
date
1 2 3 4 5 6
7[41A. Special procedure for collection of excise duty on services providedby aircraft operators in respect of passengers embarking on international journeyfrom Pakistan. (1) The provisions of these rules shall apply for collection and paymentof excise duty by the aircraft operators in respect of passengers embarking oninternational journey from Pakistan including chartered flights. Hajj passengers, transitpassengers and supernumerary crew shall be excluded from the scope of these rules.
(2) Every aircraft operator, including foreign airlines operating from Pakistan,engaged in providing services of international travel from anywhere in Pakistan shallcharge and pay the excise duty leviable on such services rendered or provided to anyperson. For the purpose of levy of excise duty under these rules, the services providedby the aircraft operators shall represent the total charges received from the passengersexcluding the taxes and fees leviable thereon.
(3) The airlines and aircraft operators shall, if not already registered, shall applyto the Central Registration Office located at Central Board of Revenue for exciseregistration in the form, FE-1 under rule 3.
(4) The duty under these rules shall be charged and paid by the airline on theface value of the ticket excluding the taxes and fees leviable thereon. In case ofchartered flights duty shall be charged on the amount of charter charges excluding thetaxes and fees leviable thereon.
(5) The duty due for each month shall be paid by the airline by the 14th day of thefollowing second month in respect of the services provided upto the last working day ofeach calendar month. The airlines and aircraft operators shall file a monthly returnelectronically in the form FE-IV(d) under rule 49 by the 15 th day of the month to theCollectorate in whose jurisdiction it is registered.
(6) In case duty is not deposited by the airline by the due date, it shall, in additionto the payment of duty and default surcharge, be also liable to penalty under the Act orthese rules.
(7) The Head Offices of the airlines shall maintain records of the servicesprovided or rendered under these rules and the collection of duty thereon in such
7 Rule 41A inserted vide SRO 561(I)/2006 dated 5.6.2006.
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manner as will enable the ascertainment of payment of excise duty on the servicesmentioned in the scope of these rules.]
42. Special procedure for advertising agents. (1) Every person providing
or rendering services as an advertising agent shall pay duty in the mannerspecified hereinafter provided that no duty shall be payable on the salary
and allowances ancillary to the salary of such person.
(2) The advertising agent shall maintain account of all services provided or
rendered by them and shall issue a bill of charges for each transaction from a duly bound
book of serially-numbered bills of charges which shall include the particulars of the person
providing or rendering service, description of the service provided or rendered and the
amount charged.
(3) A copy of the bill referred to in sub-rule (2) shall be given to the person towhom such services have been provided or rendered and one copy thereof shall be
retained by the person providing or rendering services in the said bound book of bills of
charges.
(4) Not more than one book of bill of charges shall be used at one time
provided that where such person has one or more branches of the establishment,
separate book of bill of charges may be used for each such branch.
(5) The advertising agent shall also maintain accounts in register on a weekly
basis ending every Thursday in the following form, namely:-
Name and location of the agent......................
Bill of
charges
No. and
date
Name
of
client/
custom
er
Name of the
media
company
Brief of
the job
Amount of
charges
bills/ to be
billed
Commiss
ion
involved
Amount
of
Federal
excise
duty
1 2 3 4 5 6 7
(6) The person providing or rendering service shall pay duty on quarterly basis
by the 15th day of November, February, May and August on the basis of the amount of
commission charged or billed during the last quarter.
(7) The person liable to pay duty shall, alongwith the evidence of payment of
duty, submit to the Collector quarterly statement, before the last day of the month of
November, February, May and August, in the following form, namely:-
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Quarterly statement for services rendered by M/s ........
for the
(Name and complete address)
quarter ending ...................... 20 ......
-------------------------------------------------------
1. Amount of commission billed during the quarter.
2. Excise duty paid by the agent:
(i) Treasury's name
(ii) Treasury Challan number and date
(iii) Amount
3. Excise duty paid by others as withholding duty:
(i) Name of the person paying the withholding duty.
(ii) Treasury's name.
(iii) Treasury Challan number and date.
(iv) Amount.
(8) The advertisements sponsored out of funds provided under grant-in-aid
agreements shall not be charged to duty and the registered person shall keep the proper
record of all such advertisements.
8[42A. Special Procedure for cable TV operators.(1) Every person providingor rendering services as a cable TV operator shall obtain Federal excise registrationfrom the Collector of Federal Excise having jurisdiction and shall pay Federal exciseduty leviable on the services provided or rendered by him at the rate specified in Table-II
of the First Schedule to the Act.
(2) The cable TV operator shall charge, collect and pay Federal excise duty onmonthly basis through Federal excise return, which shall be deposited in the designatedbranch of the National Bank of Pakistan by the 14 th day of the month following themonth in which such services were provided or rendered. For every month, the cableTV operator shall file a return in the form FE-IV(e) under rule 49 by the 15 th day of thefollowing month to the Collectorate in whose jurisdiction it is registered.
8 Rule 42A inserted vide SRO 561(I)/2006 dated 5.6.2006.
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(3) No adjustment of Federal excise duty or sales tax shall be admissible to thecable TV operators.
(4) Each cable TV operator shall maintain a list of all subscribers to whom cable
TV network services are provided or rendered and shall issue a bill of charges onmonthly basis from a serially numbered bill book indicating the name and address of thesubscriber as well as the amount charged from him.]
43. [Special procedure for collection of Federal excise duty on
telecommunication services.(1) Every person, firm or company,
hereinafter referred to as the person, engaged in providing or rendering
telecommunication services as mentioned in the First Schedule to the Act,
if not already registered, shall obtain Federal excise registration from the
Collector of Federal Excise in whose jurisdiction the said person, or as the
case may be, his head office is located:
Provided that where the person is already registered under the Sales Tax Act,1990, he shall not be required to take separate registration for excise purposes and hisSales Tax registration shall be deemed to be a registration for the purpose of the Act.
(2) The person shall pay duty in the following mode and manner, namely:
(a) in case of post paid telephone services, duty shall be paid by the 21st day
of the following second month;
(b) in case of pre-paid telephone services, duty shall be paid by the 21st dayof the following month; and
(c) in case of other telecommunication services, duty shall be paid by the 21stday of the following month.
(3) While determining his liability, the person shall be entitled to deduct inputtax paid on procurement of any equipment or the duty paid on acquiring services inconnection with the provision of telecommunication services.
(4) The person, or as the case may be, the head office of the person shall, alongwith the proof of payment of duty, submit its Revenue Office-wise or, as the case may
be, service outlet-wise statement by the date specified in sub-rule (2), in the followingforms, namely:-
FORM-IMONTHLY RETURN FOR POST PAID TELEPHONE SERVICES RENDERED BY M/S ---------------------------------------- DURING THE BILLING MONTH OF ------------------------Name and location ofthe Revenue Office /Service outletDescription oftelecommunication
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serviceprovided/renderedTariff-heading / subheadingas per FirstSchedule to the ActAmount billed or oughtto be billed during the
month(1) (2) (3) (4)FED payable FED paid Balance payable (ifany)No. and date ofTreasury challan
(5) (6) (7) (8)
FORM-IIMONTHLY RETURN FOR PRE-PAID TELEPHONE SERVICES RENDERED BY M/S ---------------------------------------- DURING THE BILLING MONTH OF ------------------------No. and value of prepaidcards sold duringthe monthName and location of
the service outletDescription oftelecommunicationserviceprovided/renderedTariff-heading / subheadingas per FirstSchedule to the ActNo. Amountor value(1) (2) (3) (4) (5)FED payable FED paid Balance payable (ifany)No. and date ofTreasury challan
(6) (7) (8) (9)FORM-IIIMONTHLY RETURN FOR TELECOMMUNICATION SERVICES RENDEREDBY M/S ---------------------------------------- DURING THE BILLING MONTH OF ------------------------Name and location ofthe Revenue Office /Service outletDescription oftelecommunicationserviceprovided/renderedTariff-heading / subheadingas per FirstSchedule to the Act
Amount billed or oughtto be billed during themonth(1) (2) (3) (4)FED payable FED paid Balance payable (ifany)No. and date ofTreasury challan
(5) (6) (7) (8)
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(5) Failure to pay the duty by the due date, as specified in sub-rule (2), shallrender the person, or as the case may be, the head office of the person, liable to apenalty under the Act in addition to payment of duty and default surcharge payablethereon under section 8 of the Act.
(6) In addition to the statement specified under sub-rule (4), the person, or as thecase may be, the head office of the person shall also maintain such other records andsubmit such other statements, as may be specified, with prior approval of the Board, tothe Collector of Federal Excise having jurisdiction.
(7) An officer or officers of Federal Excise as are deputed by the Collector ofFederal Excise having jurisdiction, shall have access to any of the records maintainedby the said person, or as the case may be, the head office of the said person.]
9[43A. Special procedure for payment of Federal excise duty on franchise
fee or technical fee or royalty under a franchise agreement.(1) Every person, firmor company, hereinafter referred to as franchisee, using the right to deal with the goodsor services of the franchiser under a franchise agreement against a pre-determined feeor royalty, if not already registered, shall obtain Federal excise registration from theCollector of Federal Excise in whose jurisdiction the franchisee or as the case may be,his head office is located:
Provided that where a franchisee is already registered under the Sales Tax Act,1990, he shall not be required to take separate registration for excise purposes and hisSales Tax registration shall be deemed to be a registration for the purpose of the Act.
(2) The duty shall be paid by the franchisee, or as the case may be, the headoffice of the franchisee at the rate of fiveper centof the value of taxable service, whichshall be the gross amount or the franchise fee or the deemed franchise fee or technicalfee or royalty charged by the franchiser from the franchisee for using the right to dealwith the goods or services of the franchiser.
(3) The franchisee, or as the case may be, the head office of the franchisee shallpay the duty due for a month on the last day of each month. For every month, thefranchisee or the Head Office of the franchisee shall file a return in the form FE-IV(f)under rule 49 by the 15th day of the following month to the Collectorate in whose
jurisdiction it is registered.
(4) Failure to pay the duty by the due date, as specified in sub-rule (3), shallrender the franchisee, or as the case may be, the head office of the franchisee, liable toa penalty under the Act, in addition to the payment of duty and default surcharge.
(5) The Collector of Federal Excise having jurisdiction shall obtain from the StateBank of Pakistan the statistics or data concerning payment of franchise fee or technicalfee or royalty paid by a franchisee to the franchiser, on a quarterly basis and shall use
9 Rule 43A inserted vide SRO 561(I)/2006 dated 5.6.2006.
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such statistics or data to determine or verify the amount of duty paid by a franchiseeduring the said period.
(6) An officer of Federal Excise as are deputed by the Collector of Federal Excisehaving jurisdiction, shall have access to the records maintained by the franchisee, or as
the case may be, the head office of the franchisee.]
CHAPTER IX
PAYMENT OF DUTY AND FILING OF MONTHLY RETURNS
10[
44. Payment of duty.(1) Every person required to pay Federal excise duty
shall prepare challan indicating the amount of duty payable during that
month and present such challan in designated branch of the National Bankof Pakistan.
(2) A person registered in the jurisdiction of a Large Taxpayers Unit or, as thecase may be, Regional Tax Office, shall at the time of presenting his challan, legibly andconspicuously indicate the expression LTU or, as the case may be, RTO, on the topright corner of the challan.
(3) The registered person shall deposit the amount of Federal excise duty duefor a month on the last working day of each month.]
45. Receipt of payment by the Bank.(1) The Bank official shall ensure that
the particulars entered in all the three copies of the challan are identical and
that the amount deposited by the person tallies with the amount indicated
as payable in the return, and shall thereafter sign and stamp the challan in-
dicating the date of payment of duty and submission of the challan.
(2) The Bank shall forward the original copy of the challan to the concerned
Collector of Federal excise or as the case may be the Large Taxpayers Unit, and the
duplicate shall be delivered to the registered person as a token of receipt of payment of
duty and the third copy shall be retained by the Bank for its record.
(3) In case of payment through cheque, pay order or bank draft, the Bank will
receive the challan in triplicate along with the instrument of payment for the amount of
duty payable indicated in the challan and issue a provisional acknowledgement receipt to
the registered person.
(4) On clearance of the instrument, the Bank official shall sign and stamp the
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challan indicating the date on which payment is received by the Bank and in cases where
the payments are received through pay order or bank draft, the bank shall affix two
stamps on the challan indicating the date on which the pay order or bank draft was
received for clearing and the date on which the pay order or bank draft was cleared for
payment by transfer.
(5) The date of payment, in case of payment through cash or cheque, shall be
treated as the date on which the payment is received by the bank and in case of payment
through pay order or Bank draft, the date on which the pay order or Bank draft is tendered
at the Bank counter shall be treated as the date of payment and where the pay order or
Bank draft, so tendered at the Bank counter, is not cleared on its presentation for Bank
clearing, the registered person shall, without prejudice to any other action, be liable to pay
default surcharge and penalties prescribed under the Act or these rules.
46. Payment of service charges to the Bank.(1) The Bank shall charge ten
rupees per challan as service charges from the Collectorates having juris-diction in the area where the bank branches are located.
(2) For the purpose of claiming service charges referred to in sub-rule (1), the
Manager of the main branch of the Bank shall submit the claim to the Assistant Collector
of Federal excise of the concerned Collectorate in the first week of the following month
supported by a statement indicating date, number of challan received, number of challan
submitted to the Collectorate, amount of duty collected and amount of duty deposited in
the State Bank of Pakistan.
(3) The Assistant Collector shall verify the statement submitted under sub-rule
(2) from the Accounts Section of the Collectorate. If the claim is found to be in order andthe Assistant Collector is satisfied that the Bank has fulfilled its responsibility under the
Agreement, he shall sanction the claim and issue a cheque within a week from the date of
submission of the claim, provided that in case of delay by the Collectorate, it shall pay a
penalty at the rate of fifteen per cent per annum for the amount late paid.
(4) If the Bank fails to fulfill the conditions specified in the Agreement, the
Assistant Collector shall deduct the amount of penalty leviable thereunder on the Bank at
the rate of fifteen per cent per annum against the amount late deposited in the State Bank
of Pakistan from the service charges admissible to the Bank.
(5) If the challans are not submitted to the Collectorate within forty-eight hours
of the receipt thereof in the designated branches of the Bank, the service charges in
respect of the challan submitted late shall also be deducted and the remaining amount, if
any, shall be sanctioned by the Assistant Collector and cheque therefor shall be issued to
the Bank.
(6) For deduction of any amount under sub-rule (4), the Assistant Collector
shall intimate the Bank the reasons thereof within seven days of deduction.
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(7) Where it is not clear as to whether deduction should be made, the Assistant
Collector shall require the Bank for clarification before taking a decision.
(8) All public holidays and the number of days the Collectorate is prevented
from functioning due to factors beyond its control, shall be excluded while calculating
delay in sanctioning the claim for service charges.
(9) Where the Assistant Collector requires any clarification from the Bank, the
time taken by the Bank for this purpose shall be excluded from the time specified for
sanctioning the service charges claim.
47. Submission of monthly return.11[(1) Every registered person shall file a
monthly return in the forms set out at FE-IV and FE-IV (a to f) in accordance
with the instructions printed on its reverse, by the 15th day of the following
month, to the Collector of Federal excise having jurisdiction.]
(2) On receipt of return, the Computer Section of the Collectorate shall com-pare the amount declared thereon as payable with the amount of duty deposited in the
bank against the relevant challan of the registered person and in case any discrepancy is
discovered, the Manager of the concerned bank branch and the registered person shall
be informed thereof provided that where it is confirmed that due duty has been under-paid
or short-paid or has not been paid, necessary action for recovery of such duty shall be
taken promptly besides other legal action against the registered person.
CHAPTER X
APPEALS AND ALLIED MATTERS
48. Procedure for appeals to Collector (Appeals). (1) An appeal filed to
the Collector (Appeals) under section 33 of the Act after the expiry of thirty
days may be admitted by the Collector (Appeals) if he is satisfied that the
appellant had sufficient cause for not preferring the appeal within thirty days.
(2) An appeal under this rule shall be accompanied by a fee of one thousand
rupees.
(3) The Collector (Appeals) shall give an opportunity to the appellant to be
heard if he so desires and if so requested by the appellant, such opportunity shall beprovided to the person authorized by him in writing.
(4) The Collector (Appeals) may, at the hearing of an appeal, allow the appellant
to go into any ground of appeal not specified in the grounds of appeal, if he is satisfied that
the omission of such ground from the grounds of appeal was not willful or unreasonable.
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(5) The Collector (Appeals) may, after making such further verification or inquiry
as may be necessary, pass such order as he thinks fit confirming, modifying or annulling
the decision or order appealed against, after taking additional evidence, if necessary.
(6) The order of the Collector (Appeals) disposing of the appeal shall be in
writing and shall state the points for determination, the decision thereon and the reasonsfor the decision.
(7) On the disposal of appeal, the Collector (Appeals) shall communicate the
order passed by him to the appellant, the adjudicating authority and the Collector of
Federal excise.
49. Appeal to the Appellate Tribunal. (1) In case an appeal under section
34 of the Act has been filed in the Appellate Tribunal after the expiry of sixty
days from the date on which the decision or order sought to be appealed
against is communicated to the persons preferring the appeal, the appeal
may be admitted by the Tribunal if it is satisfied that the appellant had
sufficient cause of not preferring the appeal within sixty days.
(2) On receipt of notice that an appeal has been preferred, the party against
whom the appeal has been preferred may, notwithstanding that he may not have appealed
against such order or any part thereof, file within thirty days of the receipt of the notice a
memorandum of cross-objections against any part of the order appealed against and such
memorandum shall be disposed of by the Tribunal as if it were an appeal presented within
the time specified in sub-section (1) of section 34 of the Act.
(3) The Tribunal may admit the filing of a memorandum of cross-objections afterthe expiry of the relevant period referred to in sub-rule (2), if it is satisfied that there was
sufficient cause for not presenting it within that period.
(4) An appeal to the Tribunal shall be accompanied by a fee of one thousand
rupees and shall be in such form and verified in such manner as may be specified by rules
made in this behalf.
50. Order of the Appellate Tribunal. (1) The Appellate Tribunal may, after
giving the parties to the appeal an opportunity of being heard, pass such
orders thereon as it thinks fit, confirming, modifying or annulling the decision
or order appealed against or may refer the case back to the authority whichpassed such decision or order with such directions as the Tribunal may think
fit, for a fresh adjudication or decision after taking additional evidence, if
necessary.
(2) The Appellate Tribunal may, at any time within three years from the date of
order, with a view to rectifying any mistake apparent from the record, amend any order
passed by it under sub-rule (1) and shall make such amendments if the mistake is brought
to its notice by the Collector of Federal excise or the other party to the appeal:
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Provided that an amendment which has the effect of enhancing an assessment or
reducing a refund or otherwise increasing the liability of the other party shall not be made
under this rule, unless the Tribunal has given notice to him of its intention to do so and has
allowed him a reasonable opportunity of being heard.
(3) The Tribunal shall send a copy of every order passed by it under thissection, disposing of an appeal, to the Collector of Federal excise concerned, Collector
(Appeals) concerned and the other party to the appeal.
(4) Save as otherwise provided in the Act, an order passed by the Tribunal shall
be final.
51. Procedure of Appellate Tribunal. (1) The provisions of sub-sections (1),
(2), (5) and (6) of section 194-C of the Customs Act, 1969 (IV of 1969), shall
apply to the Appellate Tribunal in the discharge of its functions under this Act
as they apply to it in the discharge of its functions under the said Act.
(2) Every appeal against a decision or order relating, among other things, to the
determination of any question having a relation to the rate of duty of excise or to the value
of excisable goods and services for purposes of assessment, shall be heard by a Special
Bench constituted by the Chairman of the Tribunal for hearing such appeal and such
Bench shall consist of not less than two members and shall include at least one judicial
member and one technical member.
(3) The Chairman or any other member of the Tribunal authorized in this behalf
by the Chairman may, sitting singly, dispose of any case which has been allotted to the
Bench of which he is a member where
(a) in any disputed case, other than a case where the determination of any
question having a relation to the rate of duty of excise or to the value of
excisable goods and services for purpose of assessment is in issue or is one
of the points in issue, the difference in duty involved or the duty involved; or
(b) the amount of fine or penalty involved does not exceed 12[fifteen] hundred
thousand rupees.
(4) If the members of a Bench differ in opinion on any point, the point shall be
decided according to the opinion of the majority, if there is a majority, but if the membersare equally divided, they shall state the point or points on which they differ and the case
shall be referred by the Chairman for hearing on such point or points to one or more of
the other members of the Tribunal, and such point or points shall be decided according to
the opinion of the majority of the members of the Tribunal who have heard the case
including those who first heard it:
12 Substituted for word five vide SRO 647(I)/2006 dated 21.6.2006.
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Provided that, where the members of a Special Bench are equally divided, the point
or points on which they differ shall be decided by the Chairman.
(5) Subject to the provisions of the Act and these rules, the Appellate Tribunal
shall have power to regulate its own procedure and the procedure of the
Benches thereof in all matters arising out of the exercise of its powers or ofthe discharge of its functions, including the places at which the Benches
shall hold their sittings.
52. Payment of fee in appeals.The fee for filing appeals before the Collector
(Appeals) or the Appellate Tribunal shall be deposited in any of the
designated branches of National Bank of Pakistan against T.R-6 challan
under the relevant head of account.
CHAPTER XI
13[ALTERNATIVE] DISPUTE RESOLUTION
53. Application for 14[alternative] dispute resolution.Any registered per-
son interested for resolution of any dispute under section 38 of the Act may
submit a written application for15[alternative] dispute resolution to the Cent-
ral Board of Revenue, stating inter alia, the following, namely:-
(a) the Collectorate of Federal excise with whom a dispute has arisen;
(b) the particulars of the case;
(c) the grounds on the basis of which a resolution of a dispute is being sought
by the applicant duly supported with relevant documents;
(d) the extent or the amount of excise duty, default surcharge and penalties
etc., which the applicant agrees to pay, if any;
(e) details of amounts already paid, if any; and
(f) the particulars of any person who will represent the applicant.
54. Appointment of16[Alternative] Dispute Resolution Committee.(1) The
Board, after examination of the contents of an application by a registered
person and facts stated therein and on satisfaction that a dispute deserves
consideration for resolution for the removal of hardship under section 38 of
13 The word ALTERNATE substituted vide SRO 561(I)/2006 dated 5.6.2006.14 The word alternate substituted vide SRO 561(I)/2006 dated 5.6.2006.15 The word alternate substituted vide SRO 561(I)/2006 dated 5.6.2006.16 The word alternate substituted vide SRO 561(I)/2006 dated 5.6.2006.
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the Act, may constitute a committee for examination of the issues involved
in the dispute and for taking other actions as provided under sub-section (3)
of section 38 of the Act.
(2) The Board may appoint one of the members of the committee, other than a
public servant, to be its Chairman.
(3) The Board may specify the time within which the committee shall be
required to submit its report to the Board:
Provided that the time so specified may, if requested by the Chairman of the
committee for reasons to be recorded in the request, be extended by the Board to such
extent and subject to such conditions and limitations as it may deem proper.
55. Working of the Committee.The Chairman of the committee shall be re-
sponsible for deciding the procedure to be followed by the committee which
may inter alia, include the following, namely:
(a) to decide about the place of sitting of the committee;
(b) to specify date and time for conducting proceedings by the committee;
(c) to supervise the proceedings of the committee;
(d) to issue notices by courier, registered post or electronic mail to the applic-
ant;
(e) to requisition and produce relevant records or witnesses from the Collector-ate or other concerned quarters;
(f) to ensure attendance for hearings either in person or through an advocate,
representative or a tax consultant;
(g) to co-opt any other technical, professional, or legal expert;
(h) to consolidate recommendations of the committee and submission of the
conclusive report to the Board; and
(i) for any other matter covered under this chapter.
56. Recommendations of the committee.(1) The committee may determine
the issue and may thereafter seek further information or data or expert opin-
ion or make or cause to be made such inquires or audit as it may deem fit
and shall eventually formulate its recommendations in respect of any matter
mentioned in sub-section (1) of section 38 of the Act.
(2) The Chairman of the committee shall send a copy of the recommendations
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of the committee to the Board, applicant and the concerned Collector simultaneously.
57. Reconsideration by the committee.(1) The Board of its own motion, or
on the request of the applicant, may refer back the recommendations of the
committee for rectification of any obvious error or for reconsideration of the
facts not considered earlier.
(2) The committee after rectification of the error or reconsideration of the facts
as aforesaid shall furnish to the Board its fresh or amended recommendations within such
period as may be specified by the Board.
58. Decision of the Board.(1) The Board, after examining the recommenda-
tions of the committee, shall finally decide the dispute and make such or-
ders in such manner as it may deem fit for the resolution of the dispute un-
der intimation to the applicant, the Chairman of the committee and the con-
cerned Collectorate.
(2) On receipt of the Boards order as aforesaid, the concerned Collectorate
shall implement the order in such manner and within such period as may be specified by
the Board in the order.
59. Record of Alternate Dispute Resolution cases.A complete record of all
proceedings of the cases dealt with under the alternate dispute resolution
scheme shall be maintained by the concerned Collectorate and the con-
cerned Collector shall ensure that proper arrangements are made for the
purpose of maintaining such records in appropriate manner.
CHAPTER XII
RECOVERY OF ARREARS OF DUTY
60. Recovery of arrears of duty. (1) Where any amount of Federal
excise duty or any other sum under the Act or these rules is due from any
person, the officer of Federal excise may take or cause to be taken the
following actions, namely:
(a) deduct the amount from any money owing to person from whom such
amount is recoverable and which may be at the disposal or in the controlof such officer or any officer of Income Tax, Customs or Sales Tax
Department;
(b) require by a notice in writing any person who holds or may subsequently
hold any money for or on account of the person from whom duty may be
recoverable to pay to such officer the amount specified in the notice;
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(c) stop removal of any goods from the business premises of such person till
such time the amount of duty is paid or recovered in full;
(d) require by a notice in writing any person to stop clearance of imported
goods or manufactured goods or attach bank accounts;
(e) seal the business premises till such time the amount of duty is paid or-
recovered in full;
(f) attach and sell or sell without attachment any movable or immovable
property of the registered person from whom duty is due; and
(g) may recover such amount by attachment and sale of any moveable or
immovable property of the guarantor, person, company, bank or financial
institution where a guarantor or any other person, company, bank or
financial institution fails to make payment under such guarantee, bond or
instrument.
(2) The officer of Federal excise, while making recovery of arrears of duty
under this rule may dispense with the sequence of actions specified in clauses (a) to (g)
of sub-rule (1).
(3) The procedure laid down in the Sales Tax Rules, 2005 regarding recovery
shall, mutatis mutandis, be followed for the purpose of recovery of arrears of duty under
this Chapter.
(4) For the purpose of recovery of duty, penalty or any other demand raised
under the Act, or these rules, the officer of Federal excise shall have the same powers
which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the
purpose of recovery of an amount due under a decree.
61. Payment of arrears in installments. The Collector of Federal excise
may, if requested in writing, may for reasons to be recorded in writing, allow
any registered person to deposit arrears of duty recoverable from him in in-
stallments subject to such reasonable conditions or limitations as he may
deem appropriate.
CHAPTER XIII
ENTRY, SEARCH, SEIZURE, INVESTIGATION AND CONFISCATION
62. Authorised officer to have free access to premises, equipment, stocks
and accounts relating to excisable goods and excisable services.
Any officer authorised in writing by the Collector in this behalf, shall have
free access at all times to any premises and to any place where excisable
goods are processed, stored, sold or manufactured, or where excisable
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services are provided or rendered, and may, inspect the building, the plant,
the machinery, and the stocks, and the accounts, and may at any time
check the records of the goods stocked in, or removed from the factory, or
place, or their transfer within a factory, to that part of the premises, if any, in
which they are to be used for the manufacture of any other commodity, or
the record being maintained where excisable services are provided orrendered, whether for the purpose of testing the accuracy of any return or
statement submitted under the Act or these rules, or of informing himself as
to any particulars regarding which information is required for the purposes
of the Act or these rules.
63. Powers of the authorised officer. (1) Any officer duly empowered by
the Collector may stop and search any vessel, cart or other means of
conveyance for excisable goods, and may seize and remove or detain any
goods in respect of which it appears to him that duty should have been,
but has not been levied, or that any contravention of the provisions of theAct or these rules has occurred subject to Chapter IV of the Act.
(2) Every officer of Customs duly empowered by the Collector shall have, use,
and exercise all such and the like powers and authority for the search, examination,
removal, seizure, detention and confiscation of any vessel, cart, or other means of
conveyance, or any horse or other animal, or any goods liable to confiscation under the
Act or these rules, as are, or may be, conferred on the like officer of Federal excise.
Explanation:For the purpose of this rule, excisable goods means cigarettes and
beverages.
64. Power to enter and search. (1) The Central Board of Revenue may
empower any officer of any department under its control to enter and
search at any time by day or by night any land, building, enclosed place,
premises, or other place upon or in which he has reason to believe that
excisable goods are being processed, sorted, stored, manufactured or
excisable services are provided or rendered in contravention of the
provisions of the Act or these rules subject to Chapter IV of the Act.
65. Notices. Every notice under the Act or these rules shall be deemed to
be served on the date on which a copy thereof is tendered or delivered tothe person on whom it is to be served, or to his agent, if he has any or,
when the notice has not been so served, the date which shall appear to
the officer holding the inquiry to be the date on which the person on whom
the same is to be served has become aware of the issue.
66. Confiscation and disposal of goods. (1) When anything is confiscated
under the Act or these rules, such thing shall thereupon vest in the
Government.
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(2) The officer adjudging confiscation shall take and hold possession of the
thing confiscated, and every officer of Federal excise or of Police, on the requisition of
such officer, shall assist him in taking and holding such possession.
(3) Articles of which confiscation has been adjudged and in respect of which
the option of paying a penalty in lieu of confiscation has not been exercised, shall be sold,destroyed or otherwise disposed of in such manner as the Collector may direct.
67. Seizure of plant and machinery.(1) In cases where any plant or
machinery is being used for the manufacture or production of counterfeit
goods, such plant or machinery shall be seized by the authorized officer of
Federal excise not below the rank of Additional Collector.
(2) The plant and machinery seized under sub-rule (1) shall be liable to outright
confiscation and destroyed in such manner as may be approved by the Collector subject
to the law.
CHAPTER XIV
AUDIT
68. Audit.(1) The Collector may depute any Federal excise officer subor-
dinate to him to conduct audit of the records and accounts etc., of any per-
son registered under the Act.
(2) The Federal Excise officer who has conducted audit shall issue audit
observation pointing out the contraventions of the Act or rules and the
amount of duty of excise or any amount payable under this Act or the rules
made thereunder and the registered person may, within a period of fifteen
days of the receipt of audit observation, submit his point of view in writing.
(3) If, within the period prescribed in sub-rule (2), no reply is received or the
reply furnished by the registered person is found unsatisfactory, the Federal
Excise Officer shall issue an audit report specifying the amount due from him
under any of the provisions of this Act or the Rules made thereunder.
(4) Notwithstanding the penalties prescribed in section 19, if a registered person
wishes to deposit the amount of duty not paid, short paid or the amount ofduty evaded along with default surcharge voluntarily, whenever it comes to
his notice, before receipt of notice of audit, no penalty shall be recovered
from him:
Provided that if a registered person wishes to deposit the amount of duty not paid,
short paid or amount of duty evaded along with default surcharge during the audit, or at
any time after issuance of show cause notice he may deposit such amount alongwith
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twenty five percent of the amount of penalty pre